How Do Current Social Security COLAs Stack Up Against the Average Increases?
Every year Social Security adjusts the benefits it pays retirees to help them keep up with inflation. It’s known as the annual cost-of-living adjustment (COLA). According to an article by AOL.com, COLA as we know it started in 1975. That was the first year Social Security started using Consumer Price Index (CPI) inflation data to calculate the COLA. Before 1975, any increases to Social Security were set by legislation.
Since 1975, the average COLA has been 3.77%. Twice it reached double digits and three times the COLA was zero. While we won’t know next year’s COLA until October, early indications are that retirees could see a 2.6% bump in benefits for 2025. That’s less than this year’s 3.2% COLA and substantially short of 2023’s 8.6% increase.
The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and will ensure the long-term solvency of the Social Security program.
